We plot the rejection probability for $\beta_1$ across varying parameters of the DGP to understand how characteristics of the DGP affect the test. We define the rejection probability as the proportion of repetitions in the simulation experiment that result in a p-value $\leq \alpha$. Here, we choose to set the significance level $\alpha = 0.1$.
[In practice, documentation of the plotters should answer the questions “what” and “why”. That is, “what” is the plot, and “why” are we using/studying it? As this simulation experiment is a contrived example, we omit the “why” here.]
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